Well it’s no surprise, especially as we told you on Monday (first and exclusively as always of course) and even hinted weeks back that Reactrix was in trouble to see that parts of it are now up for sale.
MediaWeek was actually only a few days late with the story though which is well worth a read…
Reactrix Up for Sale
Oct 15, 2008
By Katy Bachman
Reactrix, the alternative out of home media company that provides gesture-based interactive advertising opportunities in malls and movie theatres, is on the block.
In receivership, the Redwood City, Calif.-based company retained business consultants Sherwood Partners to “manage the restructuring process and find buyers for the company’s media and technology assets,” Mike Ribero, CEO of Reactrix said Wednesday (Oct. 15) in a prepared statement.
Ribero blamed a weak market for alternative out of home media and the current credit crisis, which made it difficult for the company to obtain debt or equity financing.
Since the company was founded in 2002, Reactrix has had a number of investors including Worldview Technology Partners, Mobius Venture Capital, Thomas Weisel Venture Partners, and Tim Koogle, the former chairman and CEO of Yahoo!
Sherwood has retained 13 of Reactrix’s key technology employees in the hopes of selling the technology. The company’s deals in malls and with National CineMedia will also remain operational “to help provide a potential acquirer with a smooth transition,” Ribero said.
Despite Reactrix’s financial situation, the company has drawn a number of top advertisers including Coca-Cola, Sony Pictures, Mars, Visa, New Line Cinema, and Subway, among others.
According to the Reactrix, Sherwood is currently in discussion with several potential buyers.
Mike Ribero, CEO of Reactrix may well blame a weak market on his company’s collapse but those of us who have looked closely at the company books will figure that bad management is probably closer to the truth!
It’s not difficult to guess at who might want to buy the remnants of the Mall business – your suggestions on a postcard please, Ed
We would also expect a couple of well known suitors to be attracted to the technology and the technology team.